ProtectedAreasNetwork

Financing the Protected Areas NetworkFinancing the Protected Areas NetworkRepublic of PalauRepublic of Palau

Alma Ridep-Morris (MPA Program Manager/PAN Coordinator)

Ministry of Resources and Development

•• Population: 19,000Population: 19,000•• Land Area: 481 kmLand Area: 481 km22

•• Sea Area: 600,900 Sea Area: 600,900 kmkm22

•• 586 islands spread 586 islands spread over more than 700 over more than 700 km from Velasco Reef km from Velasco Reef in the north to Helens in the north to Helens Reef in the south.Reef in the south.

•• No. of visitors: 80,000 No. of visitors: 80,000 (2004)(2004)

REPUBLIC OF PALAU

Palau and the coral trianglePalau and the coral triangle

Draft map coral triangle

Courtesy The Nature Conservancy

Palau

Indonesia

PNGSolomon Isl.

Philippines

Protected Areas Network Act Protected Areas Network Act (Nov. 2003)(Nov. 2003)

•• National framework to National framework to supportsupport state and state and community level action. community level action.

•• Dual purposes of the PAN Dual purposes of the PAN Act: Act:

–– Address local resource Address local resource management needsmanagement needs

–– Protect nationProtect nation--wide wide biodiversity, habitats & biodiversity, habitats & natural resources natural resources

•• Includes marine & Includes marine & terrestrial areasterrestrial areas

Protected Areas Network ActProtected Areas Network Act

•• Full range of protected areas Full range of protected areas options.options.

•• Requires a fully collaborative Requires a fully collaborative effort at the community, State effort at the community, State and National levelsand National levels

•• Other resource management Other resource management and planning actions will be and planning actions will be requiredrequired

Main Components of PANMain Components of PANFour broad components: Four broad components:

–– Supportive policiesSupportive policies

–– Strong scienceStrong science

–– Effective managementEffective management

–– Sustainable financeSustainable finance

Supportive policiesSupportive policies•• Application processApplication process•• Selection CriteriaSelection Criteria•• Framework of regulationsFramework of regulations

Photo by Eric Verheij

Supportive Policies: Selection Supportive Policies: Selection CriteriaCriteria

•• CriteriaCriteria1.1. Ecological criteriaEcological criteria2.2. Resilience criteriaResilience criteria3.3. Economic CriteriaEconomic Criteria4.4. Social CriteriaSocial Criteria5.5. ThreatsThreats

•• ““Added valueAdded value””1.1. FeasibilityFeasibility2.2. BiogeographicBiogeographic significancesignificance

Strong Science Base for Decision MakingStrong Science Base for Decision Making

•• Completed studies:Completed studies:–– Hydrodynamic modelingHydrodynamic modeling–– Habitat classification studyHabitat classification study–– Spawning aggregation studySpawning aggregation study–– NgerikillNgerikill watershed resource watershed resource

assessment.assessment.

•• Close collaboration with Close collaboration with partners incl.: Belau partners incl.: Belau National Museum, PCS, National Museum, PCS, PICRC, CRRF, the TNC PICRC, CRRF, the TNC Reef Resilience WGReef Resilience WG

Photo by Eric Verheij

Effective Effective management at management at State levelState level

Goals:Goals:

••Protection of Protection of biodiversitybiodiversity

••Preserving cultural Preserving cultural and recreational and recreational heritageheritage

••Sustainable Sustainable subsistence and subsistence and commercial fisheriescommercial fisheries

••Providing high quality Providing high quality tourism and tourism and recreational activitiesrecreational activities

Sustainable Financing PlanSustainable Financing Plan•• The sustainable financing plan The sustainable financing plan

for the National Protected for the National Protected Area Network will:Area Network will:–– Build upon Build upon existing existing

revenue from fees and revenue from fees and licenses,licenses,

–– Build upon Build upon existing existing National budget National budget allocationsallocations,,

–– Create a Create a new revenue new revenue streamstream,,

–– Leverage Leverage international international development assistance.development assistance.

Sustainable Financing Next StepsSustainable Financing Next Steps•• Work with some of existing protected Work with some of existing protected

areas. areas. •• Detail current National Budget Detail current National Budget

allocations in support of the PAN.allocations in support of the PAN.•• Put in place the legislative framework Put in place the legislative framework

for the use of dedicated new funds, to for the use of dedicated new funds, to finance and effectively manage the finance and effectively manage the PAN.PAN.

•• Strategy to engage key international Strategy to engage key international donors in the capitalization of an donors in the capitalization of an endowmentendowment

•• Establishment of a nonEstablishment of a non--profit profit corporation to manage and disburse corporation to manage and disburse fundsfunds

Sustainable Financing Next StepsSustainable Financing Next Steps

Summary of PAN costsSummary of PAN costsItemItem DescriptionDescription Costs (US$)Costs (US$)

Existing sitesExisting sites All existing protected areasAll existing protected areas 1,070,0001,070,000

Potential Potential expansionexpansion

At least one protected area At least one protected area per State (16)per State (16)

320,000320,000

NetworkNetwork--wide wide supportsupport

National government inputs, National government inputs, network management & network management & coordination, science and coordination, science and sustainable financesustainable finance

800800--980,000980,000

Investment & Investment & targeted targeted ResearchResearch

Investment in compatible Investment in compatible enterprises and specialised enterprises and specialised studiesstudies

100,000100,000

TotalTotal 2.292.29--2.47m2.47m

Summary of current revenue sourcesSummary of current revenue sourcesSourceSource DescriptionDescription Revenues Revenues

(US$)(US$)State income & State income & budget supportbudget support

Based on Koror and Based on Koror and PeleliuPeleliuincomes & estimated budgetary incomes & estimated budgetary support from State support from State Governments Governments

460460--610,000610,000

National budgetNational budget Inputs through national budget Inputs through national budget appropriation to Government appropriation to Government DepartmentsDepartments

200,000200,000

NGO/operatorsNGO/operators Ongoing contributions to Ongoing contributions to science, patrolling, awareness science, patrolling, awareness raising, permit collection.raising, permit collection.

100,000100,000

TotalTotal 760760--910,000910,000

Potential new revenue sourcesPotential new revenue sourcesSourceSource DescriptionDescription Revenues Revenues

(US$)(US$)New New revenue revenue streamstream

New revenue less New revenue less administrative costsadministrative costs

700,000700,000––1.0m1.0m

International International assistanceassistance

As a $12m As a $12m endowment returning endowment returning @5%p.a@5%p.a

600,000600,000

TotalTotal 1.301.30--1.6m1.6m

Balance sheet for annual operation of Balance sheet for annual operation of the Palau Protected Areas Networkthe Palau Protected Areas Network

ItemItem Costs (US$)Costs (US$)PAN CostsPAN Costs 2,470,0002,470,000RevenueRevenue 910,000910,000ShortfallShortfall (1,560,000)(1,560,000)New RevenueNew Revenue 1,570,0001,570,000BalanceBalance 10,00010,000

In conclusionIn conclusion

•• Palau is committed to preserve its biodiversity Palau is committed to preserve its biodiversity through a network of protected areas.through a network of protected areas.

•• Palau is putting in place the legislative Palau is putting in place the legislative framework for the use of dedicated new funds, framework for the use of dedicated new funds, to finance the more comprehensive, resilient to finance the more comprehensive, resilient and effectively Protected Area Network.and effectively Protected Area Network.

•• Palau needs assistance for the capitalization of Palau needs assistance for the capitalization of an endowment to ensure the sustainable an endowment to ensure the sustainable financing of the Protected Area Network.financing of the Protected Area Network.

Kid a Kid a dimlakdimlak denguudenguu tialtial beluubeluurara rucheledrucheled era era irecharirechar, , KedeKede baibaimelengmeleng erer ngiingii era era rengelekedrengeleked..

We do not inherit the earth from our ancestors, We do not inherit the earth from our ancestors,

We are borrowing it from our children.We are borrowing it from our children.